8 AAC 46.045 - Acceptable security deposits
(a) Acceptable
security deposits only include irrevocable letters of credit from financial
institutions authorized to conduct business in this state under
AS
06.01.010 -
AS
06.40.190.
(b) A security deposit under this section
will be valued at the security deposit's current market value and must be
readily convertible to cash.
(c)
Security deposits will be assigned to the commissioner, or the commissioner's
successors, or assigns. The deposits will be submitted to the commissioner of
revenue. Interest accruing on a negotiable security deposit will be collected
and transmitted at least annually to the self-insurer, if the self-insurer is
not in default under
AS
23.30.170.
(d) If the self-insurer defaults under
AS
23.30.170 or files for bankruptcy, the
commissioner will, through the use of the security deposit, obtain sufficient
money to pay benefits and compensation awarded or secure a replacement policy
of coverage. A security deposit will not be returned to a self-insurer until
all obligations of the self-insurer have been fully discharged. After all
obligations have been fully discharged, the division will return any remaining
security deposit to the self-insurer.
(e) A self-insurer that ceases to self-insure
shall notify the division and may recover the securities deposited with the
division upon posting a special release bond issued by a corporate surety in an
amount equal to the total value of the securities. The special release bond
must cover all existing liabilities under the Act and remain in force until all
obligations under the Act have been fully discharged.
Notes
Authority:AS 23.30.005
AS 23.30.075
AS 23.30.090
AS 44.31.020
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.